The Real Deal Miami

Fannie and Freddie impose new standards

November 10, 2008 10:40AM

People looking to buy more expensive homes next year will have fewer
options to find financing because Fannie Mae and Freddie Mac will have
lower limits on the size of loans they can buy. The changes, effective
January 1, will lower the limit in high-priced real estate markets to
$625,500 from $729,950. Consumers who need to take out home loans above
that amount typically pay higher interest rates, and that can price
some would-be buyers out of the market.